Correlation Between Jacquet Metal and PLAYTIKA HOLDING

Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and PLAYTIKA HOLDING at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Jacquet Metal and PLAYTIKA HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jacquet Metal Service and PLAYTIKA HOLDING DL 01, you can compare the effects of market volatilities on Jacquet Metal and PLAYTIKA HOLDING and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Jacquet Metal with a short position of PLAYTIKA HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and PLAYTIKA HOLDING.

Diversification Opportunities for Jacquet Metal and PLAYTIKA HOLDING

-0.58

Correlation Coefficient

Jacquet Metal  PLAYTIKA HOLDING

Excellent diversification

The 3 months correlation between Jacquet and PLAYTIKA is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and PLAYTIKA HOLDING DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYTIKA HOLDING and Jacquet Metal is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Jacquet Metal Service are associated (or correlated) with PLAYTIKA HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYTIKA HOLDING has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and PLAYTIKA HOLDING go up and down completely randomly.

Pair Corralation between Jacquet Metal and PLAYTIKA HOLDING

Assuming the 90 days horizon Jacquet Metal Service is expected to under-perform the PLAYTIKA HOLDING. But the stock apears to be less risky and, when comparing its historical volatility, Jacquet Metal Service is 1.3 times less risky than PLAYTIKA HOLDING. The stock trades about -0.07 of its potential returns per unit of risk. The PLAYTIKA HOLDING DL 01 is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  690.00  in PLAYTIKA HOLDING DL 01 on October 23, 2024 and sell it today you would lose (25.00) from holding PLAYTIKA HOLDING DL 01 or give up 3.62% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Jacquet Metal Service  vs.  PLAYTIKA HOLDING DL 01

Jacquet Metal Service

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jacquet Metal Service has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

PLAYTIKA HOLDING

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PLAYTIKA HOLDING DL 01 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, PLAYTIKA HOLDING is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Jacquet Metal and PLAYTIKA HOLDING

The main advantage of trading using opposite Jacquet Metal and PLAYTIKA HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, PLAYTIKA HOLDING can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PLAYTIKA HOLDING will offset losses from the drop in PLAYTIKA HOLDING's long position.

The idea behind Jacquet Metal Service and PLAYTIKA HOLDING DL 01 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.